TNAG-2413-FCO40-3515-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-fina-1992 — Page 54

GOVERMENT HOUSE HONG KONG.

MON 30 MAR 92 10:48

PG.21

20

35***

drawn

any

Before

airport completion,

the

callable

equity

as a loan subordinated treated

to all

down will be

project initial debt. On completion, a reconciliation will

be made in which the total amount of funds already drawn

down under this arrangement will be offset by the effect of

beneficial circumstances which specified

may have

occurred in the project cashflows (e.g. any reduction in

overall project cost or increase in pre-completion revenues)

and the net funds remaining after any repayment has been

made to Government will only then be converted into equity.

equity is injected into the AA

maintain the

This ensures that ΠΟ more

than

is

necessary

to

robustness expected in the 'base case'.

level

of project

Other Forms of Government Support

36.

callable

support

In addition το making available

equity, the Agreement sets out other ways in which

Government will

the financing

of the airport

paid-up

and

project. These are set out below.

Kai Tak Surplus

37.

The

including

surplus from the extended operation of Kai Tak

revenue generated by any passenger terminal charge